Mirroring the UK market, low & no drinks are thriving in the US, explained Dan Stiller, co-founder and CEO of non-alc marketplace Better Rhodes. 

Speaking at the Club Soda Summit today, Stiller said that the total beverage alcohol category in America is in distress, noting a declining trend since 2020. 

Meanwhile, drawing on NIQ data, he said the non-alcoholic wine category is growing by 24% year on year. “These numbers don’t even include the non-alc marketplace and specialty shops,” he added. 

Considering the most popular style of low & no wine, Stiller said that – as we’re seeing in the UK now – sparkling has traditionally led the category. However, this is shifting. 

“When we entered the market around five years ago, sparkling represented around 80% of our wine sales. Now it’s probably reds and whites, followed by sparkling,” he said. 

Predicting that sales will continue to grow in this area, Stiller said he sees his experience as indicative of what’s to come: “I’m in a direct-to-consumer position [at Better Rhodes], which I believe is around four to five years ahead of retail,” he explained. 

On low & no wines of all kinds, Stiller continued that he expects continued and fast growth. “When I started my business, I thought I’d be selling beers to guys like me. But now wine represents 60% of my sales and 75% of my margins. It’s defining the market.” 

Looking forward to trends that are building in the US – and could translate into the UK – Stiller highlighted the area for growth in wine-based cocktails. 

In the US, he pointed to the product Beatbox as an example, a “Tetra Pak wine cooler,” which is selling at a rapid pace. 

“There is a need and a demand for wine-based cocktails,” he said, noting that they are a relatively untapped market compared to spirit-based RTDs. 

Likewise, he suggested a focus on bringing non-alcoholic wines to a bag-in-box format. “I think the first person to nail a bag-in-box non-alc wine will have something really interesting.”